Part III of this book is concerned with the historical and geographical unfolding and philosophical development of Buddhism. Chapter 9 is concerned with the history and development of the Chinese appropriation of Buddhism. It considers Buddhism's conceptual relationship to the teachings of Confucius and Daoism and focuses on the particular texts and ideas of Bodhidharma and Huineng. It concludes with a brief discussion of the teachings of the highly influential Lotus Sutra.

Chapter 10 continues to trace the development of Buddhism as it was transmitted from China into Japan. Unlike Chapter 9 which was concerned with the development of the Dharma from the point of view of its teachers, this chapter considers the logical development of the teachings themselves. It begins by focusing on the philosophical roots of the Indian sources of Pure Land ideas, and argues that one of the central questions of Japanese Buddhism is the relationship between texts and doctrines and discipline and practice. It concludes with a consideration of the logic of some of the key ideas and teachings of Pure Land Buddhism in China and Japan.

Chapter 11 focuses on the Tibetan appropriation of Buddhism. It begins with a consideration of the sources of Tibetan Buddhism and distinguishes it from pre-Buddhist beliefs. It then traces the development of Tibetan Buddhism from its official recognition by its “Dharma” kings to the establishment of its most important schools.